CDZ How is $60/bbl Oil Possible?

[william the wie]

Right now there is a worldwide Natural Gas glut and substitution of LNG for most uses of oil is quite possible.

The costs of fracking is continuing to go down so the breakeven point for oil fields is going down as is the price of fields that are being purchased.

So, costs are going down while demand is pretty much stagnant. There is a huge amount of oil in storage as well.

Unless something changes radically oil will trend downward as far as the eye can see.

 

[320 Years of History]

Did you miss the news that Russia and Saudi Arabia signed a pact to curtail oil production? Will that alone drive prices to $60/barrel? I don't know, but I know they are trying to push oil prices as high as they can get them.

• Don't be so quick to dismiss 'meaningful' Saudi-Russia oil deal: RBC's Croft
• Oil rises after Russian-Saudi agreement, but off day’s highs as deal underwhelms
  
• Saudi Arabia, Russia sign oil pact, may limit output in future
  
• Iran says it'll increase output, ignoring Russia-Saudi oil deal

 

[Al Azar]

Did you miss the news that Russia and Saudi Arabia signed a pact to curtail oil production? Will that alone drive prices to $60/barrel? I don't know, but I know they are trying to push oil prices as high as they can get them.

• Don't be so quick to dismiss 'meaningful' Saudi-Russia oil deal: RBC's Croft
• Oil rises after Russian-Saudi agreement, but off day’s highs as deal underwhelms
  
• Saudi Arabia, Russia sign oil pact, may limit output in future
  
• Iran says it'll increase output, ignoring Russia-Saudi oil deal

It's all up to the Saudis. The price of oil is in their hands. The rest of us are only minor players.

 

[320 Years of History]

Did you miss the news that Russia and Saudi Arabia signed a pact to curtail oil production? Will that alone drive prices to $60/barrel? I don't know, but I know they are trying to push oil prices as high as they can get them.

• Don't be so quick to dismiss 'meaningful' Saudi-Russia oil deal: RBC's Croft
• Oil rises after Russian-Saudi agreement, but off day’s highs as deal underwhelms
  
• Saudi Arabia, Russia sign oil pact, may limit output in future
  
• Iran says it'll increase output, ignoring Russia-Saudi oil deal

It's all up to the Saudis. The price of oil is in their hands. The rest of us are only minor players.

Red:
I doubt that's so.

 

[Al Azar]

Did you miss the news that Russia and Saudi Arabia signed a pact to curtail oil production? Will that alone drive prices to $60/barrel? I don't know, but I know they are trying to push oil prices as high as they can get them.

• Don't be so quick to dismiss 'meaningful' Saudi-Russia oil deal: RBC's Croft
• Oil rises after Russian-Saudi agreement, but off day’s highs as deal underwhelms
  
• Saudi Arabia, Russia sign oil pact, may limit output in future
  
• Iran says it'll increase output, ignoring Russia-Saudi oil deal

It's all up to the Saudis. The price of oil is in their hands. The rest of us are only minor players.

Red:
I doubt that's so.

The very fact that oil prices are so low as to drive a lot of American companies out of business suggests to me that we're not the ones manipulating the market. We haven't the juice. SA does, and is regulating the price by its choice of production levels.